Free-choice Blocks in the Market Place SweeTub Review Free-choice Blocks in the Market Place Steve Robbins US Feeds

Choice SweeTubs Low-Moisture Blocks

Categories of Blocks (tubs): Low moisture Blocks (LMB) Composite blocks Poured blocks Compressed blocks There are 4 categories of blocks in tubs and the small pressed block (not shown) Low moisture blocks such as SweeTubs. LMB are often mistakenly called cooked tubs. The liquid is “cooked” but not the dry ingredients. Composite blocks contain moderate amounts of liquids and more dry ingredients than a poured block. They are hardened by the use of reactive ingredients. Poured blocks contain higher amounts of liquid than composite or compressed blocks. They are hardened by the use of reactive ingredients. After the hardening process they will keep their form which allows for packaging options that range from plastic wrap, cardboard to plastic tubs. Compressed blocks contain higher amounts of dry ingredients, mainly distillers grains, and less liquid ingredients. They are compressed into a container. They can be ship and sold without a container. Pressed blocks are mainly dry ingredient that are pressed into various sizes that do not require a tub for handling.

RBO Manufacturing Overview (LMB) LMB are made by dehydrating liquid molasses ingredients Resulting taffy is blended with protein meals, minerals, vitamins, and other feed additives

RIDLEY “Batch Cooking” Disadvantage = Cost Advantage = Consistency Benefit = Customer The batch process allows for more control and consistency. All product is made to order. The amount of dehydrated taffy and dry base mix ingredients are weighted for each batch. These compartments must empty at the same time in order for the product to meet QA requirments. Tubs are filled to weight. The vacuum step allows the molassis and vegetable oil to be cooked at a lower temerature in the cooker and the remaining moisture will flash off as steam as it enters the vacuum tank. This reduces the risk of over cooking which will result in scorching and intake of the final product that is too low. This process is more consistent compared to the contenuos flow process where air temperature, humidity, moisture content of raw ingredients and operator skill level will impact he degree of moisture removal.

SweeTubs Filled and Weighed then Covered with SweeTub Plastic Cover

“Continuous Flow” Process MOLASSES STEAM Most competative manufactures are using a continuoues flow process that does not have the vacuum step or the bacth step where the amount of dehydrated taffy need of a specific formula is weighed. These systems are less expensive to build and maintain. The daily process is less expensive but there is the potential for high variation in the moisture content of the taffy during the day and from day to day or month to month. Advantage = Cost Disadvantage = Consistency Benefit = Manufacturer

SweeTub Advantages Batch process… Consistency! Food Safety/Quality Assurance Research & Innovation Industry Leader: Grazing distribution & rumen health patents Additive and application research Multiple manufacturing locations RBO is the block leader and has a very good history of working with US Feeds. RBO facilities are HACCP and ISO 9001 certified. These are 3rd party audit program that come at a cost. RBO has a technology center and staff that are available to assist with research and formulation projects. If you want to be confident you are delivering X grams of ABC additive, what better delivery tool that a SweeTub.

Composite Blocks (chemical) Composite Blocks use moderate levels of liquid and dry ingredients Liquid ingredients: corn steep liquor and molasses Dry ingredients: DDGS, Soybean Meal and Feather Meal Dry ingredients blended into a premix that is then blended with the liquid ingredients Product is weighed into tubs and cured Sometimes call chemically hardened tubs due to the exothermic reaction needed for the curing process. They must “set up” before they can be stacked or shipped.

Manufacturing Photo Composite tubs curing in one of our facilities.

Poured Blocks Many forms and shapes. Competitors include Purina and Westway.

POURED BLOCKS Poured blocks are made by combining molasses and/or other liquids with reactive ingredient(s) in a high shear mixer Blocks cure for 8-24 hours before stacking Much of this product is sold in the south east and south west USA.

Liquids vary and exact process will vary greatly between companies Liquids vary and exact process will vary greatly between companies. The product are often over 25% moisture.

Compressed Blocks Newest form of block on the market.

COMPRESSED BLOCKS Dry ingredients are blended into a premix This premix is metered and blended with liquids in a high speed blender The product is then weighed into tubs and compressed Product can be immediately nested and stacked

Features of Compressed Blocks DDGS (Corn) Based Formulations Highly palatable No Animal Protein Products Excellent source of Protein, Phos and Oil Formulated for 2 lb daily intake Refill “Container-less” Option is available Intakes are managed by the end user. This may require that cattle are out of product for some time period. Intakes can be 3-5 lbs/day.

Target Market Other Block Forms Compressed, Composite & Poured Higher free-choice supplement intake Low cost per ton/tub (price point) End users that like feeding corn products Dealers with limited sales force This is the most common form seen in big box farm stores like Tractor Supply

SweeTub Market (LMB) End users that value lower costs for: Labor Time Equipment End users requiring less feeding frequency End users/Dealers wanting more precise intake Typically, Dealers/Distributors who can sell value-added products

Consumption per tag real world Compressed 1-2 lb 1.5 - 4.0 lb Composite 1-2 lb 2.0 - 4.0 lb Poured 1 -2 lb 1.5 – 3.0 lb SweeTub .25 – 1.25 lb .20 – 1.5 lb

How do SweetTubs work? MAXIMUM RETURN OPTIMUM? INPUT For rumen function: fiber digestion and rumen microbial protein production we get the highest % return by supplying the first part of the limiting nutrients of protein and carbohydrate. As we add more input the % return declines. Assume the maximum rumen function is obtained by feeding X lbs. of nutrients. 0.50 lbs. of LMB will economically provide more return that the next 0.25 lbs. 0.75 lbs. in total of LMB will economically provide more than a supplement that has a 2 lbs feeding rate to provide the same amount of X nutrient. Does it always give a return to provide 100% of a nutrient? Especially when we are impacting rumen fermentation which still is not 100% accuratly defined in relation to feed type and rumen condition. INPUT

Concept of declining return using In Vitro gas production Concept of declining return using In Vitro gas production. This was a 30% LMB and the highest response was from the first 0.33 lb. which generated 33 units of gas production. The last 0.33 increment (from 1.0 to 1.33 lb.) only generated 11 units of gas production.

RSEARCH ON EFFECT OF SUPPLEMENT STRATEGY LMB will improve forage intake by improving NDF digestibility NDFD. 4 # of corn in this trial, decreased forage intake and decreased NDFD. LMB allow cows to consume more “energy” by digesting the forage they consume better. On low quality or mature standing forage this allows for higher passage rate and more total intake. For better quality forage, we can stretch forage by feeding to a desired energy status (body condition) with less but better digested forage and less “energy” supplements 14 lbs. corn fed 2 1 lb low moisture block fed

Convenience 1. Product is self fed with virtually no waste of product 2. No need for special equipment (storage tanks, bins, etc....) 3. Convenience and easy - Place tubs every 10-14 days 4. Confident of accurate nutrient & additive delivery

Key Characteristics of SweeTubs 1. Highly palatable 2. Low-moisture (2-5%) 3. Weatherproof & virtually no waste 4. Self-limiting, controlled consumption 5. Tools for feeding management 6. Convenience, and performance proven 7. Low cost per-head, per-day The popularity of SweeTub is due to the important and valuable benefits it offers today’s beef producer. These include: high palatability, low moisture content (2-5%), it’s weatherproof to eliminate waste, it’s naturally self-limiting to control intake, it offers labor and time-saving convenience and it offers surprisingly low cost per-head, per-day to feed.

Physical Characteristics of SweeTubs Hygroscopic. 1 tub per 30 head : 2 tub per group Predictable Intake Animals Must Lick (can not bite) No Salt

Today’s Prices Compressed & Composite $45.00 per 200# Tub (2 lb consumption) =$0.45 per head per day Poured $68.00 per 250# Box (1.5 lb consumption) =$0.408 per head per day SweeTub$95.00 per 200# ( 0.75 lb consumption) =$0.356 per head per day

Delivered Cost of Supplement Don’t Overlook It! “Hidden Cost” Labor Expenses Wasted Supplement Equipment Expenses fuel, maintenance, insurance, taxes, interest, mileage & depreciation. It all adds up! SweeTubs eliminates hidden cost!

SweeTub Intake Affected BY: Forage quality, quantity and availability Animal size, age, stage of production Tub formula - CP, NPN, Ca & P, Mg Tub surface area available to animals

SweeTub Free Choice Supplements 22 SweeTub 22-10 Average Forage 30 SweeTub 30-14 Lower CP Forage 30 SweeTub w BioMos or RumEnzyme Booster SweeTub Dry cows & cattle under stress 20 SweeTub All natural protein Recharge SweeTub Receiving & Stress Tub) Mineral SweeTub Option with IGR Mag SweeTub Added Magnesium Sheep SweeTub 16 AN No added copper Goat SweeTub 20 AN –Added copper AET SweeTub Equine-horses

SweeTub Focus 1. Dealer Event 2. Open Houses 3. New Products

Choice SweeTubs 30% For Calving Season 30% For Crop Residue

SweeTubs BLUEPRINT 30 SweeTub BLUEPRINT Mineral SweeTub Option: IGR

Introducing The BioTub® Now there is also a non-returnable, biodegradable container choice in addition to the non-returnable plastic container for Choice SweeTub Supplements BioTub requires a 12 tub order of the same formula. The BioTub shipping unit is pallet, 4 tubs, slip board, pallet, 4 tubs, slip board, pallet 4 tubs. The shipping unit is then shrink wrapped.

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